Two top Chinese officials have defended reforms of China's banking sector after irregular loans at the New York branch of China's biggest commercial bank triggered fines of $20m (£14.2m).

International observers fear the scandal could strengthen the stance of those favouring a slower approach to financial services reform when a major government conference meets to draft a five-year agenda for the sector next month.

Relevant departments are continuing to investigate into Comrade Wang's problems

Foreign Ministry official

Regulators in the United States and China each imposed a $10m fine on Bank of China after a joint investigation into cronyism in allocating loans.

But banking analysts remain concerned the scandal could derail Bank of China's plans for a $6bn international listing of its Hong Kong arm later this year.

'Problematic lending'

Wang Xuebing, an ex-president of Bank of China, was suspended earlier this month from his current job as head of another of China's 'big four' banks, the China Construction Bank.

A Foreign Ministry official reiterated on Tuesday that Mr Wang is being held responsible for the loans, though he did not say Mr Wang instigated them.